The Great Wall of Lubricants, Ensemble, and Auto Service Market Unveiled an Upsurge

Following the opening of the Great Wall Lubricants Automotive Service Center Beijing flagship store, another domestic lubricants giant unified petrochemicals announced yesterday that its pilot sites for 85 oil change centers across the country have been completed and will be fully rolled out in May and established in the country by the end of the year 2000 Home oil change center. In the coming May, the domestic brands' enclosure war will challenge the monopoly of the foreign brands of lubricants in the auto market. "Opening the War" "Our goal is to open 2,000 'free travel' oil change centers nationwide by the end of this year and increase sales to 2 billion yuan," said Li Jia, general manager of the unified petrochemical company, without hesitation about his expansion ambitions. Li Jia told reporters that there are currently 85 free oil change centers in the country. As a pilot, these oil change centers are all directly operated stores. The oil change center not only provides oil change services, but also provides services such as maintenance and beauty. At present, the trial has ended, and now the unity is fully accepting franchise applications nationwide. At present, it has received more than one million yuan initial fee. From May onwards, franchise stores throughout the country will be opened one after another. The latest news from another competitor, Great Wall Lubricants, was that the Asian Games Village, the flagship store of the Great Wall Lubricants Automotive Service Center, had just opened in March. At present, Great Wall Lubricant Automotive Service Center has already owned 4 direct sales stores in Beijing. According to Hu Kun, deputy head of the Chain Operations Management Department of Sinopec Great Wall Lubricant Company, Great Wall Lubricants will invest 200 million yuan in 3 to 5 years, set up 100 chain stores in Beijing, and build a nationwide chain store within five years. Another shop-opening move of Great Wall Lubricants is "taking chicken and laying eggs." Great Wall Lubricants Beijing Branch signed a one-year agreement with China Automotive Industry Corporation, a chain of auto repair companies, to operate Great Wall lubricants through more than 40 chain stores in Beijing. The expansion of both sides also has its own emphasis. According to Hu Kun, deputy head of chain operation management department of Sinopec Great Wall Lubricant Company, after the opening of four parent-city auto service centers in Beijing, the Great Wall will enter Shanghai and Guangzhou, and then spread across the country. While reunifying their borders, although Beijing has also set up an oil change center, Beijing has not been the focus of competition. The seizure of terminal unification and Great Wall's expansion in the auto service market indicates that domestic lubricant manufacturers will look to the automotive industry chain terminal --- the auto market. This change shows that the real profits of lubricants. In the field of lubricants, the most profitable vehicle lubricants. Li Jia, general manager of Unipec, told reporters that the unified industrial lubricants had been discontinued in early April and focused on producing vehicle oil. The automotive lubricant market is basically divided into three parts: Before the automobile is shipped from the factory, the lubricants that the manufacturer supplies in the automobile engine and gearbox (that is, the loading oil) are specified before the end of the mandatory maintenance period. 4S shop is responsible for the replacement of lubricants by manufacturers or distributors; after the compulsory maintenance period, the owner is free to choose after-sales service lubricants. In the area of ​​oil loading, domestic brands have taken their place, ensuring that domestic lubricants are recognized by automakers and that they can continue to be designated oils during the mandatory maintenance period. However, the market for loading oil is very small. Each car will only be filled with about 6-10 liters before leaving the factory. The mandatory maintenance period for two years will not use too much lubricant. "After the compulsory maintenance period, about 80% of the owners will not choose the 4S shop, but the society's oil change center or other auto service agencies." Li Jia, general manager of the unified petrochemical company, told reporters that 80% of the profits of lubricants Are concentrated in the service market. Therefore, the establishment of an oil change center and a service center will become a new round of competition for domestic lubricants after the competition for loading oil. The industry reshuffle and the domestic three major lubricant manufacturers compete for the loading oil market. The expansion of Uniform and Sinopec in the automotive market will also squeeze the market space for foreign lubricant brands. Compared with the domestically produced three major lubricants in the CCTV advertising business in 2004, the foreign lubricant brand has long established a good corporate and product image and has a long-term and stable customer base. Take Beijing as an example. As early as 1982, Shell established the earliest professional car maintenance center in Beijing through dealers. Currently, Shell provides oil change and maintenance services through its sales network in more than 250 cities in China. BP has established a number of “oil change” oil change centers in China. The current BP lubricants and Castrol Oil are all familiar to Chinese consumers. Other foreign brands also have more or less oil change centers or auto service organizations. In fact, there is not much difference in technology between foreign brands and domestic brands. The base oils, additives and even formulas of some products of both parties are the same, but due to the early entry of foreign capital, consumers do not understand lubricant knowledge. Long-term consumption habits make most people more willing to use foreign brand lubricants. "After the mandatory maintenance period, most consumers tend to use those well-known foreign lubricants," said Chang Yi, director of the external unit of Uni-President. Analysis of the industry, unified with the Great Wall to open stores, laying the terminal network, with advertising and various market activities have been carried out one after another, the new round of competition in the auto market will form a strong challenge to foreign lubricants, thus rewriting the industry structure. Source: Beijing Times Author: Shi Baohua Zhang Lidong

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